Trinity Industries, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Quarterly total revenues were $535.1 million, an 18% increase year-over-year from $454.1 million.
• Quarterly income from continuing operations per diluted share was $0.27, down from $0.38 in the prior year period.
• Net income from continuing operations attributable to Trinity Industries, Inc. was $21.6 million for the quarter, compared to $31.4 million in the prior year.
• Operating profit for the quarter was $95.6 million, down from $118.6 million in the prior year.
• EBITDA for the quarter was $168.6 million, down from $197.4 million in the prior year.
• Year-to-date operating cash flow from continuing operations was $242.7 million, up from $187.2 million in the prior year.
• Year-to-date net gains on lease portfolio sales were $38.7 million, compared to $35.4 million in the prior year.
• Cash flow from operations with net gains on lease portfolio sales was $281.4 million year-to-date, up from $222.6 million.
• Last twelve months Return on Equity was 29.1%, and Adjusted ROE was 31.8%.
• Total committed liquidity was $897 million as of September 30, 2026.
• Loan-to-value ratio for wholly-owned subsidiaries was 71.8% as of September 30, 2026, compared to 70.2% at year-end 2025.

Guidance and Future Outlook:

• Full-year 2026 EPS guidance remains $2.20 to $2.40.
• Management expects to finish the year within the EPS guidance range, raising expectations for full-year secondary market gains on railcar sales.
• Industry deliveries for 2026 are expected to be below 25,000 railcars.
• Net fleet investment for 2026 is projected between $300 million and $350 million.
• Operating and administrative capital expenditures for 2026 are projected between $55 million and $65 million.
• Management believes 2026 will mark the cyclical low point for industry deliveries.

Business Segments and Product Lines:

• Railcar Leasing and Services Group:
  • Revenues were $286.3 million, down from $301.0 million in the prior year, due to divestitures of two partially-owned leasing subsidiaries.
  • Operating profit was $98.0 million, down from $128.1 million, driven by lower gains on lease portfolio sales and operational inefficiencies.
  • Operating profit margin was 34.2%, down from 42.6%.
  • Fleet utilization was 97.0%, up from 96.8%.
  • Future Lease Rate Differential (FLRD) was 0.1%, down from 8.7%.
  • Renewal success improved to 89%, with renewal rates 4.1% above expiring rates.
  • Wholly-owned lease fleet increased to 97,160 units; investor-owned lease fleet increased to 50,260 units.
• Rail Products Group:
  • Revenues were $339.5 million, up from $278.8 million, driven by higher deliveries including sustainable railcar conversions.
  • Operating profit was $30.7 million, up from $19.9 million, benefiting from a gain on the sale of a manufacturing facility.
  • Operating profit margin improved to 9.0% from 7.1%.
  • New railcar orders were 2,190 units with an order value of $325.0 million, compared to 350 units and $50.7 million in the prior year.
  • Railcar deliveries were 2,030 units, up from 1,680 units.
  • Sustainable railcar conversions delivered were 355 units with a backlog of 60 units.
  • Backlog value was $1.6 billion ($1.6467 billion for standard railcars plus $5.8 million for sustainable conversions).

Market and Competitive Landscape:

• A shrinking fleet and fewer railcars in storage indicate a tightening market.
• Lease rates have not risen as quickly as asset values, suggesting room for further improvement in lease rates.
• The company divested two partially-owned leasing subsidiaries since the prior year period.

Risks and Challenges:

• Forward-looking statements involve risks including geopolitical events, economic factors, competitive pressures, and technological changes that could cause actual results to differ materially from expectations.
• Operational inefficiencies in the maintenance services business impacted the Railcar Leasing and Services Group.
• Higher selling, engineering, and administrative expenses were driven by higher employee-related costs, including incentive-based compensation.

Management Commentary and Tone:

• CEO Jean Savage described the third quarter as reflecting a business "positioned for growth, with momentum building."
• Management highlighted that revenues grew 18% year-over-year and Adjusted ROE of 31.8% was above the target range.
• Management noted that strong cash generation allowed for fleet growth and capital returns to shareholders, achieving three-year net fleet investment and cash generation targets.
• Management expressed confidence that the leasing platform continues to perform well with improved renewal success and rates.

Other Key Points:

• On October 12, 2026, Trinity Industries acquired the assets of Rubber Lining Specialists, LLC, a provider of specialized rubber lining and inspection services.
• On October 19, 2026, Trinity Rail Leasing 2026 LLC entered into a $350 million term loan agreement with a maturity date of October 2031.
• Net proceeds from the new term loan were used to redeem outstanding debt of Trinity Rail Leasing 2019 LLC's Series 2019-2 Secured Railcar Equipment Notes (all-in interest rate 3.10%) and repay borrowings under TILC's warehouse loan facility.
• Returns of capital to stockholders year-to-date were $118.7 million.
• Shares repurchased year-to-date totaled $42.0 million.
• Dividends paid to common shareholders year-to-date totaled $75.4 million.